How a strategic refinance helped one self-employed family regain momentum

This deal qualifies for our current Low LTI Promo – on through September 30. Get details here. 

For many Canadian homeowners, a temporary financial setback does not tell the full story. Behind every mortgage application is a bigger picture: income stability, home equity, family priorities, and a plan for what comes next. 

In this case, a self-employed family in Eastern Ontario came to their broker looking for a way to move forward. They had built meaningful equity in their home, but recent financial pressures and higher-cost obligations had made monthly cash flow more difficult to manage. With the right broker partnership and an alternative lending solution, the refinance helped consolidate debt, reduce monthly payments, and support a clearer path toward credit rebuilding.  

The challenge 

The clients were self-employed homeowners with established income, positive net worth, and significant equity in their owner-occupied property. However, their credit profile had been affected by missed payments, collections, and the strain of managing higher-cost debt.  

Their goal was practical and forward-looking: refinance their current mortgage, consolidate outstanding debts and collections, access a modest amount of cash for closing costs and home-related repairs, and reduce monthly payment pressure. Straightforward and relatable; offload stressful debt and fix the roof.  

Although the credit history required careful review, the broader picture supported an approval. The property had a low LTV, the borrowers had stable income, and the ratios remained in line after review.  

The solution 

Working with an amazing broker partner, the deal was structured as a first-charge refinance using a 3-year MCAN Discover Alt product. The mortgage provided a $280,000 loan amount, 3-year closed term, 30-year amortization, and 50.91% LTV.  

The structure was designed to meet the clients where they were, rather than focusing only on where their credit had been. The underwriting recommendation highlighted stable income, positive net worth, ratios in line, a marketable property, and a low loan-to-income position. The refinance consolidated debts and collections, creating a documented monthly savings of $680. 

This is where alternative lending can make a big difference. The solution gave the clients room to breathe financially while creating a plan-oriented bridge toward future prime lending. The file notes that the clients were looking for a 3-year fixed rate to get credit and life costs back under control, with the longer-term intention of graduating back to prime lending.  

Deal Snapshot 

Why this deal mattered 

This refinance was not simply about consolidating debt. It was about creating a more manageable financial structure for clients who had equity, income, and a plan, but needed a lending solution that could account for recent credit challenges. 

The approval rationale pointed to sustainable income, acceptable ratios, good LTV, and tangible monthly savings. The deal was ultimately approved as a refinance of an owner-occupied property, with the underwriter noting that the transaction would yield monthly savings of $680.  

A strong reminder that a credit score is only one part of the story. With strong equity, a resilient exit strategy, and a clear benefit to the borrower, a well-packaged Alt lending submission can help reimagine what’s possible! 

Conclusion 

Every client journey is different. In this case, the right refinance helped turn a period of payment pressure into a more structured path forward. 

With broker advocacy, careful underwriting, and a solution built around the clients’ broader financial picture, this family was able to consolidate debt, lower monthly obligations, and take an important step toward rebuilding credit confidence. 

Have a client who needs a practical path forward? Connect with your MCAN BDM to explore flexible lending solutions that help reimagine opportunity.